MPS shares surge after bank announces delay in loan payment
CFO says bank will repay tranche of government loan in 201607 February, 14:09
Bernardo Mingrone said that, due to the effect of the bank requesting an additional 500 million euros as part of a 3.9-billion-euro bailout, it was prudent ''to shift by one year the final deadline for the repayment of the same''.
Meanwhile the bank's chief executive, Fabrizio Viola, who earlier Thursday had said there were no more high-risk derivatives on the bank's books, said that ''there is no deposit flight'' from the lender.
At 12:30, shares in Milan-listed MPS were suspended following excessive volatility; they were re-admitted to trading at 12:36 and immediately gained 8.46%, at 0.25 euros.
Some 3% of the bank's total capital traded hands.
MPS shares had opened trading up 3.34%, at 0.23 euros then later leapt as news of the loan repayment delay spread through the market.